Pacific Edge preliminary financial results for FY18
Listed cancer diagnostics company, Pacific Edge Limited (NZX: PEB), has today announced its preliminary unaudited full year results for the year ended 31 March 2018, reporting increased test numbers and revenues as more urologists and healthcare organisations adopt Cxbladder into clinical use.
Pacific Edge is commercialising its Cxbladder suite of non-invasive, accurate and simple to use molecular diagnostic tests for the detection and management of bladder cancer. These allow for better care for patients, better decision making by physicians and better resourcing for the healthcare sector, and are increasingly being adopted into the standard of care.
In the past 12 months, Pacific Edge has:
• Rolled out the full suite of Cxbladder tests in target markets;
• Received growing clinical recognition and validation of its products highlighting the high performance, clinical utility and cost benefits of Cxbladder;
• Increased test numbers processed with growing adoption from private and public healthcare organisations;
• Commenced commercial business in South East Asia and recorded initial sales;
• Progressed commercial negotiations with targeted large scale healthcare organisations in the USA, including Kaiser Permanente and the Centers for Medicare and Medicaid. Pacific Edge has little to no control over the decision making processes and timings of these large organisations and while these are taking longer than expected to complete, progress continues to be made; and
• The Company has also been recognised in a number of high profile business reports – TIN Top Ten Hot Emerging Companies, Deloitte Fast50 New Zealand, Deloitte Asia Pacific Technology Fast500, FT 1000 High Growth Companies Asia Pacific.
Summary of Preliminary Financial Results:
• Pacific Edge has adopted NZ IFRS 15 revenue accounting standard for FY18, with US revenue now recognised only on a cash basis. Prior year results have been restated in line with the new standard.
• Key Company performance metrics going forward will be, cash receipts and billable tests.
• Under the new accounting
basis, Pacific Edge reported:
- Increase in Operating Revenue of 6% on prior year, to $3.4m from test sales
- Operating cash flow of $(18.1)m, in line with expectations and the previous year
- Reported loss of $19.7m for the year
- 28% increase in Laboratory Throughput to 14,446 tests, of which 82% were billable tests
• On a ‘like-for-like’ accounting basis, laboratory throughput was 91% of forecast and billable tests were 96% of forecast, and revenue was 95% of forecast, despite commercial arrangements with Kaiser Permanente not yet being finalised and slower than planned takeup from the VA.
announcement and results presentation here https://www.nzx.com/announcements/318614